The assets under management (AUM) of arbitrage funds eroded by 40% to ₹52,210 crore in March 2020 following an outflow of ₹33,767 crore, according to data from the Association of Mutual Funds in India. Their share in the total AUM of hybrid mutual funds dropped by 500 basis points to 20% in March. Arbitrage funds take advantage of price inefficiencies in the spot and futures markets. They are popular among corporates and high-networth investors because their return profile is similar to fixed in ..
